Sanctions impact: China calls off US trade talks

Beijing, Sept. 22: The trade dispute between the two largest economies in the world is about to worsen with China refusing to hold trade talks with the US that were planned for the coming days, according to people briefed on the matter.

The latest escalation in trade tensions is believed to be the cause for the decision to pull out of the talks.

On Monday, US President Trump had announced new tariffs on $ 200 billion in Chinese imports, prompting Beijing to retaliate with levies on $ 60 billion in US goods. Mr Trump then vowed to further ratchet up pressure on China by kicking in tariffs on another $ 257 billion of Chinese products.

Chinese officials are believed to be against bowing to pressure tactics.. By declining to participate in the talks, sources said, Beijing is following up on its pledge to avoid negotiating under threat.

“Nothing the US has done has given any impression of sincerity and goodwill,” Chinese foreign ministry spokesman Geng Shuang said at a news briefing on Friday. “We hope that the U. S. side will take measures to correct its mistakes.”

China and the US are closer to a full- blown trade war with the latest exchange of tariffs that take effect this coming Monday. However, Beijing left open a possibility of engaging in fresh negotiations with Washington in October, said the sources familiar with the matter.

US Treasury Secretary Steven Mnuchin invited Vice Premier Liu He, President Xi Jinping’s economic czar, two weeks ago asking for a fresh round of talks this month.

Earlier negotiations had ended without any breakthroughs. Trump officials perceived the offers from Beijing — largely involving more Chinese purchases of US agricultural and other products — as inadequate.

Whether the two countries resume high- level trade negotiations could shape the path of future tariffs threatened by the Trump administration. People familiar with the administration’s plans have said Mr Trump is expected to issue a formal statement to begin the process of crafting the next tranche of tariffs that, if fully implemented, would cover virtually all US imports of Chinese goods, which totalled $ 505 billion in 2017.

■ Chinese officials are believed to be against bowing to pressure tactics.

■ Virtually all Chinese imports to US, totalling $ 505 billion in 2017, may be covered if US imposes more tariff

■ China and the US are closer to a fullblown trade war with the latest exchange of tariffs that take effect this coming Monday.

■ The US wants more access to business in China